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Notes to the financial statements

15. Environmental rehabilitation trusts

The Group makes contributions to controlled funds that were established to meet the cost of some of its restoration and environmental rehabilitation liabilities, primarily in South Africa.

US$ million 2009 2008
At 1 January 244 252
Contributions made 29 36
Disposal of businesses (1) -
Net interest earned and fair value adjustments 14 16
Currency movements 56 (60)
At 31 December 342 244

The funds comprise the following investments:

US$ million 2009 2008
Equity 37 23
Bonds 115 82
Cash 190 139
  342 244

These assets are primarily rand denominated. Cash is held in short term fixed deposits or earns interest at floating inter-bank rates and bonds earn interest at a weighted average fixed rate of 9% (2008: 9%) and are fixed for an average period of 11.8 years (2008: 10.2 years). These assets are recorded 'at fair value through profit and loss'.

These funds are not available for the general purposes of the Group. All income from these assets is reinvested to meet specific environmental obligations. These obligations are included in environmental rehabilitation costs under non-current provisions (see note 25).

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Annual Report 2009